Operating Budget Fiscal Year

Similar documents
Operating Budget Fiscal Year City of Chesapeake Council Work Session March 27, 2018

CITY OF CHESAPEAKE ORGANIZATION

CITY OF CHESAPEAKE ORGANIZATION

Listed below is the annual appropriation, including sources used to finance the operating budget.

Proposed Operating Budget

FY State Budget Summary Analysis

City Manager Overview. City Council Work Session March 26, 2019

City Charter Reserves and Council Policy on Undesignated Fund Balance

May 22, FY 2015 Operating and Capital Budget Union County, NC. 1 BOCC & BOE Joint Meeting #2

CITY OF FALLS CHURCH. Title: Resolution Endorsing Proposed Expenditure Reductions To The City Of Falls Church FY2010 Budget (TR9-28)

FUND DESCRIPTIONS FY 2014 PROPOSED BUDGET SUMMARY

Governance and Management Services

City of Roseville City Manager Recommended 2017 Budget. July 18, 2016

FY School Board Adopted Budget Financial Highlights

FUND DESCRIPTIONS FY 2015 PROPOSED BUDGET SUMMARY

FUND DESCRIPTIONS FY 2016 PROPOSED BUDGET SUMMARY

Expenditures. All Funds Expenditure Summary. (Includes Operating Transfers Out) HFR Report>

City Council Work Session STAFFING & FY 2017 BUDGET MAY 31, 2016

Review Budget Process to Date General Fund Key Operating Departments Budget Highlights Budget Initiatives Personnel

Expenditures. All Funds Expenditure Summary (Including Operating Transfer Out)

Fund Balance Schedules. City of Chesapeake, Virginia FY Operating Budget

PUBLIC HEARING ON FISCAL YEAR BUDGET

VACO Education Steering Committee Fiscal Analytics, Ltd. August 16, 2013

CITY OF PALM BAY, FLORIDA MONTHLY FINANCIAL REPORT (UNAUDITED) MARCH Financial Report Summary

Governor Northam s Proposed Amendments to the Biennial Budget

Fiscal Year Proposed Budget

CITY OF MCKINNEY GENERAL PAY PLAN FY OCTOBER 2017

FUND DESCRIPTIONS FY 2018 PROPOSED BUDGET SUMMARY

West Mifflin Area School District

Kent C. Dickey Assistant Superintendent for Finance. July 22,

NON UNION PAY PLAN SCHEDULE -FY 2016/2017

GENERAL FUND EXPENDITURES

Budgeted Funds & Purposes

FT 311 GIS TECHNICIAN $ $ $ $ $

Proposed FY2018 Budget Presentation

TOWN OF LITTLE COMPTON, RHODE ISLAND ANNUAL FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2016

Budget Summary. FY17 Total County Revenue Sources. Misc 1.1% Federal 5.2% Gen Prop Taxes 40.3% $2,037,947,949

Financial Recovery Plan

FY 2019 City Manager s Proposed Budget

Fairfax County. Department of Management and Budget Government Center Parkway, Suite 561. Fairfax, VA

Orange Paintbrush FIN. Finance

Economic & Environmental Vitality

SAN RAFAEL CITY COUNCIL AGENDA REPORT REVIEW OF THE PRELIMINARY CITY OPERATING BUDGET FOR FISCAL YEAR

FY 2018 Proposed Budget Approach

Virginia s Economic Trends and Impact on Local Budgets

FY19 Adopted Budget Overview

FY MID-YEAR BUDGET UPDATE

Annual Fiscal Plan. FY14 FY15 FY16 Change Description 2.0% Operation 28,769,847 31,190,819 31,195, % Capital 1,525,639 1,596,650 1,600,350

OPERATING BUDGET - REVENUE CONTENTS

REQUEST FOR COUNCIL ACTION

MEMORANDUM. James E. Baker, City Manag. Back-up Information for July 12, 2016 Council Work Session/Regular Session

COUNTY OF HENRICO, VIRGINIA APPROVED GENERAL FUND REVENUES FY

Economic & Environmental Vitality

FY 2014 BUDGET CALENDAR

SERVICE DELIVERY & GOVERNMENTAL TRANSPARENCY Infrastructure & Operational Enhancements

FUND DESCRIPTIONS FY 2019 PROPOSED BUDGET SUMMARY

Queen Creek Annual Budget Organizational Structure

CITY SCHOOL DISTRICT OF SYRACUSE, NEW YORK (A BLENDED COMPONENT UNIT OF THE CITY OF SYRACUSE, NEW YORK)

2019 Budget PROPOSED Budget & Finance Budget & Finance

COUNTY OF HENRICO, VIRGINIA SOURCE OF APPROVED REVENUES - ALL FUNDS -

Town of Collierville

City of Williston Fiscal Year 2017/2018 Adopted Budget

School District of Philadelphia Budget 101: Understanding the District s Budget. April 17, 2018

PESO C.D. No RESOLUTION

City of Lompoc, California. Financial Statements. Year Ended June 30, 2015

CONSOLIDATED HIGH SCHOOL DISTRICT 230 ORLAND PARK, ILLINOIS ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED JUNE 30, 2017

Key Budget Policy Choices: Special Session

EXECUTIVE SUMMARY THE FY09 ADOPTED AND FY10 APPROVED TO THE FY08 AMENDED BUDGETS BALANCING SUMMARY

Presented By: Kevin O Rourke Interim City Manager. June 3, 2013

Superintendent s Proposed Budget

Proposed FY 2013 Budget. Chamber of Commerce Government Affairs Committee March 14, 2012

Responses to Council Questions March 19, 2018

CITY OF WOODWARD, OKLAHOMA WOODWARD, OKLAHOMA

Superintendent s Proposed FY 2017 Budget Summary

SUMMARY OF REVENUES AND APPROPRATIONS GENERAL FUND

Budget Hearing Agenda. 1. CAO Presentation 2. Public Comment 3. Board Discussion/Action

Clayton County Public Schools Fiscal Year Recommended Budget Table of Contents

HOUSE REPUBLICAN CAUCUS Fiscal Vision for Maryland. March 1, 2011

Berrien County Annual Budget 2018

TOWN OF EAST BRIDGEWATER, MASSACHUSETTS BASIC FINANCIAL STATEMENTS AND MANAGEMENT S DISCUSSION AND ANALYSIS WITH INDEPENDENT AUDITOR S REPORT FOR THE

Town of Chelmsford FY2016 Town Manager's Final Recommendation April 1, 2015

PRESENTATION TO COUNTY COMMISSIONERS

CAPITAL IMPROVEMENT PLAN POLICIES

CAPITAL FUNDS 2015 Budget

Vision, Mission, Values and Critical Success Factors

Process. Board of County Commissioners. March 27, 2012

Section E. Recap By Fund. Table of Contents

Non-Departmental. City of Chesapeake, Virginia FY Operating Budget. Summary

Key Budget Policy Choices

GWINNETT COUNTY BUDGET RESOLUTION

Iredell-Statesville Schools Local Current Expense Funding Request Local Current Expense funding $ 36,145,170

BUDGET ORDINANCE FOR FISCAL YEAR

FY 2016 Proposed Budget - General Fund Expenditures

FY 2017 Budget Public Hearing

A Quick Guide to the FY 11 Adopted Budget Department of Management and Budget

FY 2018 County Board Guidance

PAY PLAN SCHEDULE -FY 2014/2015

TAZEWELL COUNTY PUBLIC SCHOOLS Budget Overview

CITY OF WINSTON-SALEM

F Y B U D G E T P R E S E N T A T I O N T O T H E P U B L I C

Transcription:

Operating Budget Fiscal Year 2016 17 Council Work Session March 22, 2016 Topics for Review City Council s Guiding Principles Budget Process Improvements in Revenue Reserve Requirements Budgetary Savings Employee Benefits Budget recommendations State Budget Update Remaining Action 2 1

City Council s Guiding Principles No increase in the real estate tax rate No new fees No supplanting of losses in state or federal funds with local revenue Review all vacant positions for possible elimination Identify operating efficiencies and reduce spending accordingly Identify non core services for possible consolidation, curtailment or elimination 3 Budget Process Revenue forecast completed by budget office 3 year budget plans prepared by departments Analytical inquiry and review by budget office Budget Review Committee Includes City Manager, Deputy City Manager, City Attorney, Chief Information Officer, Purchasing Officer, and Directors of Budget, Finance, and Human Resources Reconcile budget plans with available resources City Manager Recommendation Council Appropriations 4 2

Improvements in Revenue Entity wide revenue increases by $49.6 million (5.2%) General Fund revenue increases by $17.3 million (3.3%) Property tax revenues increase 3.4% No change in tax rates recommended Real estate assessments increased 1.5% Net new construction increases revenue by 1.6% Current real estate taxes contribute to preponderance of increase Increase in collections of delinquent taxes, especially personal property Current personal property taxes very small increase Other local tax revenues increase 5.6% Strength in consumer taxes: sales taxes up 6.8%; restaurant taxes up 8.2% Improvements in business licenses (BPOL) and recordation taxes No changes recommended in tax rates 5 Improvements in Revenue, continued Permits up 12.7% Relatively small source of revenue ($2.5 million in FY 2017) Most of the increases are related to construction activity Charges for services up 13.0% General Fund increase primarily EMS collections Public Utilities 4.9% increase in water and sewer rates Opening of Dominion Boulevard Increased service billings CIBH Chesapeake Public Schools increases 5% Primarily state revenue Rebenchmarking New composite index 6 3

Revenue Trends ( in millions) General Fund All Funds FY 2009 $ 518.8 $ 940.1 FY 2010 $ 509.0 1.9% $ 925.3 1.6% FY 2011 $ 499.0 2.0% $ 902.8 2.4% FY 2012 $ 502.2 0.6% $ 910.2 0.8% FY 2013 $ 501.9 0.0% $ 896.0 1.6% FY 2014 $ 507.6 1.1% $ 913.5 2.0% FY 2015 $ 523.9 3.2% $ 937.5 2.6% FY 2016* $ 526.1 0.4% $ 947.2 1.0% FY 2017* $ 543.4 3.3% $ 996.8 5.2% FY 2018** $ 555.4 2.2% FY 2019** $ 567.7 2.2% *Budgeted Revenue **Revenue Projections 7 Revenue All Funds Revenue (in millions) FY 2015 Actual FY 2016 Budget FY 2017 Budget Increase from FY 2016 Local Revenue General Property Taxes $ 307.21 $ 311.09 $ 321.66 $ 10.57 3.4% Other Local Taxes 132.71 131.49 138.81 7.32 5.6% Charges for Services 116.27 119.14 134.62 15.48 13.0% Other Local Revenue 20.51 16.37 17.29 0.92 5.6% Local Revenue $ 576.70 $ 578.09 $ 612.38 $ 34.29 5.9% State Revenue 317.59 327.03 342.47 15.44 4.7% Federal Revenue 43.23 42.09 41.96 (0.13) 0.3% Total Revenue $ 937.52 $ 947.21 $ 996.81 $ 49.60 5.2% 8 4

Reserve Requirements Charter and Policy Reserve Add $1.04 million of GF revenue to reserve required by Charter (6%) Add $2.08 million of GF revenue to unassigned fund balance (policy 12%) Add $188,000 of TIF revenue to reserves (18%) Locked Revenue for Capital Schools $26.2 million of locked revenue Debt service and cash funding of capital $20.3 million City $20.1 million of locked revenue Debt service and cash funding of capital $13.7 million Up to $8.5 million of capital locked revenue is needed for Spring 2016 debt issuances Excess locked revenue is added to Fund Balance as a commitment 9 Budgetary Savings Employee Benefits Other Post Employment Benefits (OPEB) FY 2016 Budget based on estimates of Annual Required Contributions $10.7 million FY 2017 Budget based on estimates of Annual Required Contributions $2.9 million Savings for FY 2017 $7.8 million (73% reduction) Primary factor Medicare eligible retirees Future risk investment returns Virginia Retirement System Employee retirement costs FY 2016 Budget $18.5 million FY 2017 Budget based on estimates of Annual Required Contributions $16.6 million Savings for FY 2017 $1.9 million (10% reduction) Primary factors positive investment returns, hybrid program Future risk investment returns 10 5

Other Employee Benefits Employee healthcare increases $534,500 Moderate largely because FY 2016 budget understated non participants Health care budget based on December 2015 employee selections with 6% increase starting December 2016 6% of Employer s annual subsidy = $1.5 million Disability benefits increase $187,300 Most of increase ($150,000) provides new coverage to Plan 1 and 2 employees Most of remainder is for new hybrid participants Group life insurance increases $97,800 (increased rates) Worker compensation increases $586,600 Prior year trends Increased funding of Risk Fund to address fund deficit 11 Expenditures and Transfers All Funds Expenditures (in millions) FY 2015 Actual FY 2016 Budget FY 2017 Budget Increase from FY 2016 Governance/Management $ 23.78 $ 26.77 $ 26.21 $ (0.56) 2.1% Quality Community of Life 78.71 88.07 89.37 1.30 1.5% Economic/Environmental Vitality 139.60 161.04 171.71 10.67 6.6% Public Safety and Justice 137.81 148.90 150.18 1.28 0.9% Education 446.37 453.47 467.99 14.52 3.2% Debt Service Fund 52.93 39.40 42.30 2.90 7.4% Non Departmental 13.91 20.16 19.69 (0.47) 2.3% Total Expenditures $ 893.11 $ 937.81 $ 967.45 $ 29.64 3.2% Capital/Grant Transfers 46.92 25.66 45.55 19.89 77.5% Expenditures + Transfers $ 940.03 $ 963.47 $ 1,013.0 $ 49.53 5.1% 12 6

BUDGET RECOMMENDATIONS FY 2016 2017 13 City Portion of Operating Budget Net Increases (Decreases) in Budget Chesapeake Public Schools (revenue sharing formula adds) Employee compensation Across board general wage increase 2.5% effective July 1, 2016 Recognition of superior performance Public Safety Career Path added funds to cover full year Compression adjustment part time/seasonal/substitute employees Estimates include adjusting all pay scales by 1.5% Payroll efficiencies Convert to arrears pay for all employees New positions added (44.8 FTE net), including reclassifications Debt service for Spring 2016 borrowings (city and schools) Regional jail commitment $ 7.4 million $ 5.8 million $ 0.5 million $ 0.4 million $ 0.1 million $ 3.5 million $ 3.2 million $ 8.5 million $ 1.6 million 14 7

New Positions Recommended CIBH new and expanded services 17.5 FTE $1.12 million City Attorney attorney(pt offset) 0.4 FTE $ 88,500 City Manager records manager (citywide) 1.0 FTE $ 64,300 Develop & Permits reorganization 1.0 FTE $ 1,200 Finance continue spec. project (payroll) 1.0 FTE $ 64,200 Fire fiscal administrator (with offset) 0.0 FTE $ 26,800 Human Resources continue spec project 1.0 FTE $ 59,900 IT reorganization/mainframe transition 0.0 FTE $ 74,700 PRT recreational specialists and leaders 6.2 FTE $225,200 Housekeeping new PS Operations Bldg. (part year) 2.0 FTE $ 17,300 Public Utilities service gaps/productivity 10.0 FTE $536,850 15 New Positions Recommended, continued Police Animal Services Outreach 0.6 FTE $ 22,700 Police FOIA office spec, video technician 2.0 FTE $ cost offset Police additional police officers (incl. equipment) 3.0 FTE $ 339,600 PW Stormwater office asst. compliance reports 1.0 FTE $ 40,400 PW Traffic traffic signal technician 1.0 FTE $ 51,700 Sheriff reclassification data control techs 0.0 FTE $ 87,500 Central Fleet add PT drivers for vehicle delivery 1.3 FTE $ 34,000 Mosquito Control reactivate mechanic tech 1.0 FTE $ 31,600 Other reclassifications/part time citywide 4.8 FTE $ 57,500 Removed from Complement: Agriculture transferred to state payroll 4.0 FTE cost offset Development & Permits temporary positions 4.0 FTE CIP funding 16 8

Dominion Boulevard Completion Capital project must be complete by April 2017 Considerable incentives are available for early completion Current estimates indicate completion between September and December 2016 CTS Budget Increased for Dominion Boulevard: Dominion Boulevard tolls $ 6.55 million Interest expenses on outstanding debt $ 8.97 million * Toll system service contract $ 4.37 million CTS Budget Increased for Chesapeake Expressway: Additional tolls increase by (rate and traffic) $ 1.03 million Renewal and replacements (FY 16 omission) $ 0.77 million Interest on outstanding debt (FY 16 omission) $ 1.36 million * * Includes interest accruals on outstanding loans that will be paid in future years. 17 Public Utilities Revenue Estimates: Actual for FY 2015 was $70.2 million Budget for FY 2016 was $69.4 million (even with 4.9% rate increase) Budget for FY 2017 is $76.5 million (also includes 4.9% rate increase) Average annual increase assumed in FY 2017 forecast is 4.5% Recommended increases (decreases) in spending: Capital outlays, including small improvements and repairs $ 2,196,700 9 added positions incl. operations, meter reading, customer service 510,000 Other wage/benefit changes (savings) (691,300) Reimburse General Fund for overhead 250,000 Water contracts with neighboring localities (savings) (314,000) Interest and payments on utility debt (savings) (817,900) Increase transfers to Capital Projects Fund $ 5,996,700 18 9

3 Year Projection (Excludes School Revenue) Revenue (in millions) FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 General Property Taxes $ 307.21 $ 311.09 $ 321.66 $ 330.29 $ 338.70 Other Local Taxes $ 132.71 $ 131.49 $ 138.81 $ 141.98 $ 145.51 Charges for Services 111.94 113.75 130.66 130.76 130.97 Other Local Revenue 5.32 14.10 14.96 14.95 15.01 Subtotal $ 557.18 $ 570.43 $ 606.09 $ 617.98 $ 630.19 State Revenue 117.01 106.13 107.06 107.56 108.10 Federal Revenue 12.67 10.80 10.86 10.86 10.86 Total Revenue $ 686.86 $ 687.36 $ 724.01 $ 736.40 $ 749.15 19 3 Year Projection (Excludes School Revenue) Expenditures (in millions) FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Governance/Management $ 23.78 $ 26.97 $ 26.41 $ 27.11 $ 27.43 Quality Community of Life 78.71 88.07 89.37 91.02 92.73 Economic/Environmental Vitality 139.60 161.04 171.71 172.93 174.47 Public Safety and Justice 138.43 149.75 151.03 155.13 158.96 Education City Transfers 177.77 183.22 190.32 194.65 200.27 Debt Service Fund 52.93 39.40 42.30 41.80 34.46 Non Departmental 13.29 19.11 19.49 17.00 17.98 Total Expenditures $ 624.51 $ 667.56 $ 690.63 $ 699.64 $ 706.30 Capital/Grant Transfers 46.93 25.66 45.55 35.68 30.01 Expenditures + Transfers $ 671.44 $ 693.22 $ 736.18 $ 735.32 $ 736.31 20 10

Chesapeake Public Schools Additional funding from revenue sharing formula Additional state funding Rebenchmarking cost of education Change in local composite index (relative ability to fund) Programmatic changes Other net reductions (reliance on fund balances, grants, etc.) Net increase in school operating budget $ 7.4 million $ 6.4 million $ 4.7 million $ 1.2 million $ 5.2 million $14.5 million Note that superintendent s budget recommendation for annual city funding is $12,000 greater than final revenue sharing formula. 21 School Board Action of School Budget School Board approved budget proposal on March 14 largely as recommended by superintendent with several modifications: Increased projected student enrollment by 150 students and state funding accordingly adds $749,000 (not included in city budget) Recommended appropriation of $1,691,834 to Textbook Fund from FY 2014 15 reversion (included in city budget) Recommended appropriation of $2,382,235 to School Capital Fund for Full Day Kindergarten Program from FY 2014 15 revenue sharing settlement or true up (not included in city capital budget) With exception of small difference in final revenue sharing projection for FY 2017, city staff is in agreement with modifications. 22 11

State Budget Update General Assembly approved budget March 11 Governor may sign, veto, or recommend amendments Lawmakers return in April to consider Governor s amendments or vetoes Anticipate additional funding that is not in the budget proposal: School budget amendments include eliminating additional instructional personnel recommended by Governor, restoring Lottery funding, and accelerating teacher pay raises Constitutional officers anticipate additional funds from State Comp Board for staff pay raises Anticipate amendments to revenue and school budget based on final state budget 23 Recap of What s in the Budget Solid growth in City revenue with no increase in tax property tax rates Address school funding issues and teachers receive raises Add police officers over next three years Address public safety career path Invest in city and school facilities Strengthen city s financial reserves as required Realize huge reduction in cost of employee retirement benefits Provide 2.5% pay raise to all city employees 24 12

Remaining Action Council work sessions April 12, 19 and 26 As requested by Council Public hearings April 26 and May 10 Charter requires public hearing at least one public hearing Adoption of budget and appropriations ordinances May 10 City Charter requires adoption 45 days before year begins Technical amendments and corrections June 14 First day of new fiscal year July 1 25 13